When a Firm Considers a Triple Bottom Line as a Measure

question 299

Multiple Choice

When a firm considers a triple bottom line as a measure of long-term success, this means that it measures outcomes in which of the following three different areas:

• A) economic success, social impact, and political change.
• B) firm profitability, customer satisfaction, and behavioral change.
• C) economic success, social impact, and environmental impact.
• D) company effort, customer satisfaction, and relative market share.
• E) customer satisfaction, environmental impact, and production efficiency.

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Definitions:

Inventories

The goods and materials that a business holds with the purpose of resale or production in the future.

Wealth Effect

A behavioral economic theory suggesting that consumers spend more as the value of their assets rises, particularly visible in the increase in spending following a rise in home values or stock market portfolios.

Interest-Rate Effect

A theory suggesting that a change in interest rates will affect the level of spending on consumer goods and services due to the changes in borrowing costs.

Aggregate-Demand Curve

A curve that shows the total quantity of goods and services that all households, companies, government, and foreign buyers will purchase at each price level.